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AUSTIN, TX, Oct 15, 2013 (Marketwired via COMTEX) --
Mercom Capital Group, llc, a communications and consulting firm,
today released its report on funding and mergers and acquisitions
(M&A) activity in the Healthcare Information Technology (IT) sector
for the third quarter of 2013.

Venture capital (VC) funding in the sector continued to rise in Q3
2013 with $737 million (M) in 151 deals compared to $623M in 168
deals in Q2 2013. Year to date, the Healthcare IT sector has raised a
disclosed $1.85 billion (B).

"Funding into Healthcare IT is on pace to double over last year,"
said Raj Prabhu, CEO of Mercom Capital Group. "With major parts of
the Affordable Care Act on the horizon, the focus is on health
insurance exchanges, preventative care, wellness, population health,
and a general shift from quantity to quality of care, which is
reflected in this quarter's funding transactions."
Healthcare practice-focused technology companies received $489M in 59
deals with population health, EHR/EMR, practice management, and data
analytics companies all receiving attention this quarter.

Consumer-focused companies received $248M in 92 deals, with most
funding ($161M) going to the mobile health category, with mobile
health apps and sensors receiving the most funding this quarter.

Chart-Healthcare IT Top VC Deals:
http://mercomcapital.com/assets/images/Charts/HIT-Q3-2013/Chart_2.png
There were a total of 168 investors in Q3 2013. Kleiner Perkins
Caufield & Byers and The Social+Capital Partnership were the most
active investors and participated in four deals each. The remaining
top investors participated in three deals apiece. They included
FirstMark Capital, Founders Fund, HLM Venture Partners and Khosla
Ventures.

Mergers and acquisitions (M&A) in Healthcare IT totaled $1.1B in 45
transactions. The most active categories for M&A transactions
included revenue cycle management with nine, followed by practice
management with eight, and telehealth with four transactions.

The top M&A transactions in Q3 2013 were the $644M merger of Greenway
Medical Technologies and Vitera Healthcare Solutions, the $200M
acquisition of Medical Management Professionals (subsidiary CBIZ) by
Zotec Partners, and the $200M acquisition of Cardiocom by Medtronic.

There were a total of 412 companies and investors mentioned in this
report.